SouthernPrepper1: How would a economic depression affect me personally.

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XM42: The Handheld Flamethrower

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What If The “Crash” Is As Rigged As Everything Else?

Take your pick–here’s three good reasons to engineer a “crash” that benefits the few at the expense of the many.

There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who’s to say this crash isn’t rigged? A few things about this “crash” (11% decline from all time highs now qualifies as a “crash”) don’t pass the sniff test.

Exhibit 1: VIX volatility Index soars to “the world is ending” levels when the S&P 500 drops a relatively modest 11%. The VIX above 50 is historically associated with declines of 20% or more–double the current drop.

When the VIX spiked above 50 in 2008, the market ended up down 57%. Now that’s a crash.

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And What Percentage of the Political Elite Are Muslims in the US?

Legendary MLB pitcher Curt Schilling pulled from Little League World Series broadcast by ESPN after posting ‘unacceptable’ tweet comparing Muslims to Adolf Hitler.

h/t Frank L

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What an Actual Leader Would Say

acrualleaderIn the current deluge of wannabe leaders clamoring for attention and trying to convince us that they are the boss who should be applying rules to us, it strikes me that all of them are looking backward and none are looking forward. (I do not consider “My administration will give you more bennies” to be seriously forward-looking.)

So, since none of this crowd is going to venture anywhere outside of their hermetically sealed status quo, I’d like to give you an example of something a real leader might say.

Late summer 2015, Anytown, USA: A small platform stands at the edge of a cornfield. A very average-looking person steps up to a microphone and speaks:

Friends,

I stand here, not to praise you, but to acquaint you with reality, at least as well as I am able. Perhaps that means I should be killed or at least run out of town. But if that’s so, then so be it. I am tired of living a life other than my own – the pre-scripted, advertiser-generated life that is shoved before my eyes day by day. And I suspect that some of you are tired of it as well.

Please allow me to begin by pointing out that all the fights from all the platforms this election cycle will concern trivialities – Team Red versus Team Blue – and competing varieties of fears – terrorists versus outlawed unions versus less free stuff versus whatever works in your little corner of the world. At most, these are fights over personalities – He’s an arrogant ass, she’s a conniving witch, and so on  – all of which really come down to, “My opponent is scarier than I am.”

None of these bobbleheads will ask the questions that matter: Who are we? What do we want? Where should we be headed?

You see, once we get past all the publicized fears – some real, but most imaginary – the dialog we’re having, if we care to admit it, is mostly self-praise. We laud our great “democracy,” even though not one in a thousand can define it. Or we brag about our wonderful “freedom” but avoid defining it, knowing that our definition wouldn’t stand up to the test. Freedom is “what we have,” and further questions are evidence of stupidity, bordering on treason.

The truth is that we’ve trained ourselves to evade reality. Praising ourselves is so much easier: Team America!

By doing this, my friends, we’ve been blind to the greatest opportunity that has ever stood before a human generation: If we wanted to, we could quickly and easily step into a golden age. In fact, we’ve been doing just that, half by accident, for a long time. If we bothered to work at it, even halfheartedly, we’d go down in history as the generation that transformed humanity forever.

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Bill Gertz: PENTAGON SILENT ON WHETHER TOP-SECRET DATA WAS COMPROMISED IN CLINTON EMAILS

Hillary Rodham Clinton

The Pentagon on Tuesday sidestepped questions about whether top-secret intelligence, including secrets derived from reconnaissance satellites and aircraft, was compromised after being placed on unsecure emails found on Hillary Clinton’s private server.

Pentagon Press Secretary Peter Cook, in an inaugural briefing for reporters, would not answer questions about the secret intelligence found by an inspector general in a sampling of emails once stored on Clinton’s unsecured server. The email system was used by the former secretary of state from 2009 to 2013.

So far, some 305 emails containing classified data have been found among some 60,000 emails once kept on the private server.

“I think this an issue best left to the State Department,” Cook said. “They’ve had to address this and also Secretary Clinton. It’s not something that I think makes sense for me to get into from right here at this podium.”

Cook also would not say if the Pentagon is conducting a damage assessment or investigating whether its secrets were compromised.

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During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of Momentum

Tsunami Tidal Wave - Public Domain

This is exactly the type of market behavior that we would expect to see during the early stages of a major financial crisis.  In every major market downturn throughout history there were big ups, big downs and giant waves of momentum, and this time around will not be any different.  As I have explained repeatedly, markets tend to go up when things are calm, and they tend to go down when things get really choppy.  During a market meltdown, we fully expect to see days when the stock market absolutely soars.  Waves of panic selling are often followed by waves of panic buying.  As you will see below, six of the ten best single day gains for the Dow Jones Industrial Average happened during the financial crisis of 2008 and 2009.  So don’t be fooled for a moment by a very positive day for stocks like we are seeing on Tuesday.  It is all part of the dance.

At one point on Tuesday, the Dow was up over 400 points, and many of the talking heads on television were proclaiming that the stock market had “recovered”.  This is something that I predicted would happen yesterday

And if stocks go up tomorrow (which they probably should), all of those same “experts” will be proclaiming that the “correction” is over and that everything is now fine.

No, everything is not “fine” now.  The extreme volatility that we are witnessing just tells us that more trouble is coming.  Early on Tuesday the market was “burning up energy” as short-term investors sought to “buy the dip”.  But now that wave of panic buying is subsiding and the Dow is only up 240 points as I write this.

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Planned Parenthood Baby Parts Buyer StemExpress Wants “Another 50 Livers/Week”

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Samantha Power: Powerful Lies

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Rabbi Cahn Delivers Dire Warning For All Americans – “America Crossed The Line”

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Reality Check: Donald Trump May Be RIGHT on Birthright Citizenship!

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Devaluation Stunner: China Has Dumped $100 Billion In Treasurys In The Past Two Weeks

On August 11, China devalued its currency, and in the subsequent 3 days the onshore Yuan, the CNY, tumbled by some 4% against the dollar. Then, as if by magic, the CNY stabilized when China started intervening massively, only this time not through the fixing, but in the actual FX market.

This means that while China has previously been dumping reserves as a matter of FX policy, after August 11 it was intervening directly in the FX market, with the intervention said to really pick up after the FOMC Minutes on August 19, the same day the market finally topped out, and has tumbled into a correction since then. The result was the same: massive FX reserve liquidations to defend the currency one way or the other.

And yet something curious emerges when comparing the traditionally tight, and inverse, relationship between the S&P and the Treausry long-end: the tumble in stocks has not been anywhere near as profound as the jump in yields. In fact, the 30 Year is wider now than where it was the day China announced the Yuan devaluation.

Why is that?

We hinted at the answer on two occasions earlier (here and here) and yet the point is so critical, and was missed by virtually all readers, that it deserves to be repeated once again: as part of China’s devaluation and subsequent attempts to contain said devaluation, it has been purging foreign reserves at an epic pace. Said otherwise, China has sold an epic amount of Treasurys in the past two weeks.

How epic? We turn it over to SocGen once again:

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The Republican Party Must Be DESTROYED

No, I will not vote for a party folks.

No, you must not vote for a “party.”

Nor can you support any party that does something like this.

Party leaders in Virginia and North Carolina told Politico.com that they are considering a push to require candidates entering their respective Republican primaries to pledge their support for the eventual nominee and not run a third-party candidacy — a pledge Trump, the current frontrunner, would not make when asked to during the Fox News debate earlier this month in Cleveland.

“Anybody who wants to seek the Republican nomination should have to commit to supporting the ultimate Republican nominee,” Virginia’s former Attorney General Ken Cuccinelli told Politico. “I don’t see anything wrong with that.”

Oh really?

So what you’re saying is that if even one of the candidates contending for the Presidential nomination is unacceptable to another candidate that second candidate must pledge to support someone they find unacceptable as a President?

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Shooting Reported at Pa. Courthouse Lobby

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Augason Farms – Lead time

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Attention Wholesale Customers,

Due to our increase in demand we are temporarily extending our lead time to 14 calendar days. We apologize for the inconvenience and will update you of any changes in regards to this issue.

For further questions please feel free to contact me anytime.

Have a great day.

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